Intel has decided to end assembly and test operations in Costa Rica, a move that will eliminate 1,500 jobs, according to a report by Reuters.
A move to close the site, which is a major contributor to Costa Rica's exports, was likely decided due to a shrinking personal computer market.
The closure comes just months after the chipmaker announced it would cut spending as it tries to grow beyond PCs.
"It's being closed and consolidated into our other operations throughout the world," spokesman Chuck Mulloy said of the assembly and test operations, according to Reuters.
Intel will move assembly and testing from its site in Heredia during the next two quarters to existing locations in China, Malaysia and Vietnam, according to Mulloy.
Despite the decision, Intel will still have around 1,000 engineers, human resources, and finance employees in Costa Rica. It will also continue to conduct "research and development" there, according to Reuters.
Intel has dominated the PC chip industry, but the company has had trouble adapting its processors for tablets, and smartphones, two markets dominated by rivals like Samsung and Qualcomm.
In January, Intel said a newly built factory in Chandler, Arizona, that the company previously said would be used to produce its most advanced chips, would remain closed for "the foreseeable future" while other factories at the same location are upgraded, according to Reuters.
The same month Intel said it would reduce its global employees of 107,000 by around 5 percent. With the now expected cuts in Costa Rica, it seems Intel is keeping true to their word.
See Now: OnePlus 6: How Different Will It Be From OnePlus 5?
